Libya's discounted crude fails to attract buyers
Questions over who owns Libya's oil is deterring buyers
Libya’s official government is struggling to sell its crude oil, despite implementing a new secure payment scheme and offering significant discounts.
After losing control of the capital, Tripoli, Libya’s internationally recognised government now resides in the east of the country.
International buyers are being put off by fears that ownership of the country’s hydrocarbon reserves might be challenged by Libya’s rival government, which now controls Tripoli.
Libya’s internationally recognised government controls around half of the country’s 600,000bpd output. In an attempt to allay fears over payment security, the Libyan government has announced plans to route all payments through their banks in the UAE.
However, due to the perceived risks of doing business with the eastern Libyan government, prospective buyers have so far offered very low prices for crude.
Oil industry source said that potential buyers were willing to pay only a third of the $58 that oil is currently fetching on world markets.